Cheniere Energy Inc. canceled next week's annual meeting, citing a lawsuit that accuses the company of improperly awarding stock to employees that today would be valued at more than $1 billion.

The Houston-based company, which plans to ship U.S. natural gas abroad starting late next year, said Monday that the meeting would be rescheduled for September so it can first address the lawsuit. The company also faces opposition over a new plan to issue an additional 30 million shares to employees, after making Chief Executive...